ABSTRACT
Sickness pay has a long history as a workers’ issue. Collective provision for loss of income due to illness assumed urgency when labor or the direct products of labor began to be sold. Social benefits delivered by the state, relatively early legalization of trade unions, and antisocialist legislation were all aimed at fostering workers’ loyalty to the state. Moreover, cooperation within the funds helped to maintain close relations between the party and union elites, an important counterbalance to other divisive factors, such as the policies of the state. The passage of the 1969 Wage Continuation Law, which transferred the payment of cash benefits during illness from the statutory sickness funds to employers, was intended to redress two basic inequities of the West German social insurance system. Employment security clearly depends upon the status of the employee, the financial situation of the firm, and the vigilance of union representatives and shop stewards.
